WAYNE COUNTY, Mich. (WXYZ) — A second former Wayne County Roads Division employee pleaded guilty Wednesday for conspiring to take over $1.7 million in funds from the county.
John Gibson, 54, of Detroit, pleaded guilty today for defrauding Wayne County out of nearly $2 million in taxpayer funds. Gibson, along with fellow former Wayne County employee Kevin Gunn, 64, of West Bloomfield, illegally used taxpayer dollars for unauthorized purchases of generators and other power equipment from retailers in metro Detroit retailers that were sold for personal profit. Gibson was indicted by a federal grand jury for these crimes in October 2022.
In January, Gunn pleaded guilty to the charges and is currently awaiting sentencing.
“Today’s guilty plea is the culmination of months of collaboration between our federal, state, and local law enforcement officers who worked together to seek justice for the citizens of the Eastern District of Michigan. We thank Wayne County Prosecutor Kym Worthy and her uncompromising efforts to eliminate corrupt public officials who abuse their power and steal from the hardworking taxpayers of Wayne County," United States Attorney Dawn Ison said in a press release Wednesday.
Conspiracy to commit theft from a federal program carries a maximum sentence of up to 5 years of imprisonment and a fine of up to $250,000. Theft from a federal program carries a maximum sentence of 10 years of imprisonment and a fine of $250,000.
The charges stem from an investigation into the misuse of taxpayers funds by the Wayne County Sheriff’s Department that began in March of 2021.
“The alleged actions of these individuals are nothing short of disgraceful,” said Wayne County Sheriff Raphael Washington. “To brazenly steal from hardworking taxpayers and fraudulently line their own pockets while holding positions of public trust make these crimes all the more deplorable. This case is another example of our strong commitment to working together.”
Due to the nature of the alleged crimes, the FBI was contacted by the Sheriff’s office to assist with the investigation.
“Public officials are entrusted to use taxpayer money for its intended purpose, not for their personal benefit. Today, Mr. Gibson is being held accountable for violating that trust,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “I would like to thank the Michigan Attorney General's Office and the Wayne County Prosecutor, Wayne County Executive, and Wayne County Sheriff’s Office for their partnership on this investigation.”
A search warrant obtained in the early stages of the investigation led investigators to the uncover the embezzlement scheme.
According to information obtained from the investigation, Gibson and Gunn solicited approved Wayne County vendors to buy generators and other power equipment from metro Detroit retailers on behalf of Wayne County between January 2019 and August 2021.
"A review of invoices from Wayne County vendors revealed that between January 16, 2019, and August 3, 2021, Wayne County vendors purchased 596 generators, and a variety of other power equipment including lawnmowers, chainsaws, and backpack blowers. The purchase of these items was not authorized under any vendor contract with Wayne County nor were the items ever provided to or used by Wayne County. The total value of equipment purchased as part of the scheme was approximately $1.7 million in taxpayer funds. Gibson and Gunn were arrested in May by FBI agents, Wayne County Prosecutor’s Office Investigators, and Wayne County Sheriff’s Deputies,” the Wayne County Prosecutor’s Office said.
Gibson faces 18-24 months in prison according to sentencing guidelines.
“The brazen scheme to defraud Wayne County of nearly $2 million for personal gain is an affront to all Wayne County taxpayers. The guilty plea today represents the combined investigative efforts that involved my office, and the offices of the Wayne County Executive, the Wayne County Sheriff, and the FBI. We can all be proud of the work that we have done to root out corruption and bring justice in this case,” said Wayne County Prosecutor Kym Worthy.
